Ministry of Economic Affairs: Revenue of listed manufacturing companies weakens in the 104th year (2015)

(Taiwan TB News Network / Reporter Zhang Jiajun) The Ministry of Economic Affairs recently issued a statistical report on the revenue of listed manufacturing companies, as follows:

1. Consolidated revenue: consolidated revenue in the 104th year (2015) posted negative growth for the first time in nearly 6 years

According to data compiled from the Taiwan Stock Exchange, in the 104th year (2015), affected by weak global demand, continued declines in the prices of oil and steel, and intensifying international competition, the operating revenue of listed manufacturing companies fell from 23.4 trillion yuan the previous year to 23 trillion yuan, an annual decline of 1.7%, the first negative growth in nearly 6 years. Among the top seven industries, the petroleum and coal products industry, the chemical materials industry, and the basic metals industry all posted double-digit declines, while only the computers, electronic products and optical products industry saw revenue grow 4.2% year on year.

2. After-tax net profit: net profit margin above 5% for 2 consecutive years, showing that companies' cost control is in good shape

Over the past 3 years, the profitability of the manufacturing sector has remained stable, with after-tax net profit reaching 1 trillion yuan or more in each year. In the 104th year (2015), the after-tax net profit of the manufacturing sector was 1 trillion 205.1 billion yuan, with a net profit margin of 5.2%, holding steady at 5% for two consecutive years. Among them, the chemical materials industry and the petroleum and coal products industry benefited from lower purchase costs for oil, which widened their margins, with net profit margins of 7.9% and 7.6% respectively, a new high in nearly 5 years, and increases of 3.7 and 6.4 percentage points respectively from the previous year. In addition, the electronic components industry had a net profit margin of 10.3%, maintaining a double-digit level for two consecutive years, but due to fierce price competition in the memory, panel and chip markets, together with increased capital and technology investment, it fell 1.8 percentage points from the previous year.

3. R&D spending: R&D spending as a share of revenue reached 2.5% in the 104th year (2015), a record high

In the 104th year (2015), the R&D spending of listed manufacturing companies was 577.5 billion yuan, an annual increase of 6.0%, and R&D spending as a share of revenue reached 2.5%, a record high, showing that the manufacturing sector has continued to deepen its R&D foundation in recent years to enhance corporate competitiveness. Among them, the electronic components industry spent 282.9 billion yuan on R&D, accounting for 5.7% of the industry's revenue, rising for 5 consecutive years; the computers, electronic products and optical products industry spent 196.5 billion yuan on R&D, accounting for 1.9% of the industry's revenue, also up 0.1 percentage points from the previous year.

The top 5 companies in manufacturing R&D spending, in order, were: TSMC, Hon Hai, MediaTek, Pegatron and Delta Electronics. Their R&D amounts all hit record highs, totaling 196.7 billion yuan, accounting for 34.1% of manufacturing R&D spending, an increase of 8.2 percentage points from the 98th year (2009).

4. Fixed asset investment: fixed asset investment in the 104th year (2015) was the highest level in nearly 3 years

In the 104th year (2015), fixed asset investment by listed manufacturing companies was 1 trillion 205.5 billion yuan, the highest level in nearly 3 years, up 3.7% year on year. Among them, the electronic components industry invested 661.3 billion yuan, investing more than 600 billion yuan for 3 consecutive years, up 1.4% year on year, mainly because wafer foundry operators raised technical thresholds to improve product performance; the computers, electronic products and optical products industry invested 142.3 billion yuan, up 41.7% year on year, in response to customers' mobile communications capacity needs and assembly efficiency; the food industry fell 20.5% year on year, mainly because some food companies, in response to changes in mainland China's environmental protection policies and adjustments to their business strategies, slowed the pace of factory expansion.

The top 5 companies in manufacturing fixed asset investment, in order, were: TSMC, Hon Hai, UMC, Inotera and AU Optronics. Their combined total reached 475.5 billion yuan, accounting for nearly 40% of manufacturing fixed asset investment, a new high in recent years, an increase of nearly 14 percentage points from the 98th year (2009).